Analysis of Financial Performance of PDAMs Affected by Environmental Performance and Environmental Accounting With Agency Cost Mediation (Published)
Financial Performance is a benchmark for a company in assessing the success and sustainable companies of each age. At this time, the environment is very influential on the performance of the company’s finances. This study will analyze the financial performance of PDAM Indonesia which is influenced by environmental performance and environmental accounting by mediating agency costs. This study only used a sample of 37 PDAMs that met established criteria with the type of research being used as explanatory research. The research method used is multiple linear regression with data analysis using SPSS software. The test results show that the financial performance of PDAMs is negatively affected directly by environmental performance and is insignificant while environmental accounting in contrast has a positive effect. Meanwhile, environmental performance is mediated by agency costs so that it does not directly affect the positive effect on PDAM’s financial performance as well as environmental accounting. PDAMs that provide high agency costs to the PDAM board of directors increase PDAM financial performance
Keywords: Financial Performance, agency cost, performance and environmental accounting